MACRO ECONOMIC NEWS

SMILE FOR A DIFFERENT DAY, A DIFFERENT TOMORROW, A DIFFERENT FUTURE. WISHING A UNIQUE WEEK AHEAD.

Macro Economic News 18 May 2020

 

It will be hard for the U.S. public to be “fully confident” without a coronavirus vaccine, the central bank chairman Powell said in a broadcast interview. There are signs the economic contraction caused by the pandemic, the steepest since the Great Depression, has bottomed out and a tentative recovery may be under way and US recovery could take until end of 2021. As a consequence Gold climbs to 7-Year high while unpriceable risk of climate change stalks $31 trillion of debt. After Germany felling into recession, the third-largest economy, Japan, slipped into a recession with far steeper fall looming. Europe reopens but travel operators fear tourists will stay away.

India extends nationwide lockdown to May 31 with relaxing rules in some areas while the pandemic has pushed India’s unemployment crisis from bad to worse. Goldman Sees Worst India Recession With 45% Second Quarter Slump.

 

FINANCIAL TIMES

[I]  Jay Powell warns US recovery could take until end of 2021

[I]  Europe reopens but travel operators fear tourists will stay away

[I]  Dollar liquidity measures leave some countries out in the cold

[I]  Egyptians face economic pain despite looser lockdown

[I]  US companies set aside billions for late payments

[I]  ‘Worst-case scenario’ predicts $500bn of cuts to global dividends

    

REUTERS

[I]  India extends nationwide lockdown to May 31, to relax rules in some areas

[I]  Dollar holds firm on China tensions; negative rates talk sinks pound

[I]  Japan slips into recession, worst yet to come as pandemic wreaks havoc

[I]  Japan's economy to slump significantly due to pandemic: economy minister

[I]  Visitors to UK shops vanish during virus lockdown: survey

[I]  U.S. expected to revise PPP aid program for small businesses - WSJ

[I]  UK's Gove says EU trade deal can be done despite talks stalemate

 

BLOOMBERG 

[I]  U.S. Steps Up China Blame; Japan in a Recession: Virus Update

[I]  Oil Rises Above $30 for First Time in Two Months on Output Cuts

[I]  Powell Says Recovery Could Drag Through 2021, Fed Has More Ammo

[I]  Gold Climbs to 7-Year High After Fed’s Stocks, Growth Warnings

[I]  Japan Sinks Into a Recession With Far Steeper Fall Looming

[I]  Unpriceable Risk of Climate Change Stalks $31 Trillion of Debt

[I]  Goldman Sees Worst India Recession With 45% Second Quarter Slump

[I]  India Plans to Suspend New Bankruptcy Filings for a Year

 

WALL STREET JOURNAL

[I]  Fed’s Powell Says Economy Faces Long, Uncertain Recovery

[I]  India’s Coronavirus Crisis Spurs a New Look at Self-Reliance

[I]  Virus Drives Rapid Declines in Factory Output, Retail Sales

[I]  After Devastating Contraction, Glimmers of Growth Emerge

[I]  Coronavirus Employment Shock Hits Women Harder Than Men

[I]  Germany Enters Recession but Fares Better Than Neighbors

[I]  Japan’s Economy Fell Into Recession in First Quarter of 2020

 

BUSINESS LINE

 [I]  Big relief: Centre raises borrowing limit of States from 3 per cent to 5 per cent of GSDP for FY21

[I]  Real estate market will see a major consolidation

[I]  Without a valid FASTag, get ready to pay double the toll fee

[I]  FinMin notifies retrospective amendment in CGST Law

[I]  Government to privatise non-strategic PSUs: FM

[I]  India opposes permanent tariff cuts at WTO to deal with pandemic

 

ECONOMIC TIMES

[I]  Govt to launch dedicated TV channels for education

[I]  Small businesses get an insolvency breather

[I]  Total fiscal impact of 'Rs 20L cr package' to be Rs 1.50 lakh cr: Report

[I]  India-Russia to brainstorm on Industry 4.0, mining sector prospects post-Covid

[I]  Stimulus dent to fiscal deficit at 1-2% of GDP: Experts

[I]  Govt to bring Ordinance to amend companies law to decriminalise various provisions

 

BUSINESS STANDARD

[I]  Fiscal stimulus 2.0: Why cash support to migrant workers was aborted

[I]  Stimulus package to boost growth, but need sector-wise bailout: CEO poll

[I]  Lockdown 4.0: Curbs eased to allow some movement, economic activity

[I]  Co-working firms seek new opportunities to mitigate risk, remain afloat

[I]  Govt allows Indian public companies to directly list shares overseas

[I]  Job creation top on Nitish's mind as scores of migrants return to Bihar

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 9082;  USDINR DGCX: 75.9650;  DJIA Mini: 23736;  FTSE 100 Fut: 5872;  NIKKEI 225 Fut: 20110;  EUR-USD: 1.0826; Crude Oil (WTI): 30.68;  Gold (Spot): 1762

 

Best Regards, ARBIND
18 May 2020